Did high-taxes bring about the economic boom of the mid 20th century?

 
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Higher taxes led to a more equitable distribution of wealth

 

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The largest reason for the economic boom was female participation in the labor force

 

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  • E Jay Chavez user photo

    3

    E Jay Chavez Nov 20, 2012

    Jumped the Shark

    No, high taxes did not bring about the boom. Hi taxes were insulated by WWII and the destruction of much of the developed world. Much like today's spendthrift leaders/money printers are insulated by turmoil around the world. The least dirty shirt helped drive growth, despite high taxes.

     

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    • Luis Perez user photo

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      Luis Perez Jan 09, 2013

      I completely agree, the US found itself after WWII with a world economy in shambles and one in which they were able to be very competitive and grow.

       

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    Luis Perez Nov 20, 2012

    The largest reason for the economic boom was female participation in the labor force

    Prior to WWII female participation in the labor force was very limited. In essence 50% of the population! However, this changed quickly during and after WWII, bringing to the economy a section of productive workforce.

     

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    • Celeste Drake user photo

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      Celeste Drake Nov 20, 2012

      That's actually not true. Women did not enter the workforce in significant numbers until after the women's movement--their number really started to grow during the 80s and beyond through today. However, by the 80s, the shared prosperity wave had peaked, union density was already falling, income inquality was already on the rise, and productivity had already begun to decouple from wages. Female participation in the labor force was in fact the only thing that allowed many families to reach or stay in the middle class -- as men's wages for many families were no longer sufficient to keep up the desired standard of living without the supplement of the wive's wages. It did not cause the post-war boom.

       

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  • Luis Perez user photo

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    Luis Perez Nov 20, 2012

    Higher taxes led to a more equitable distribution of wealth

    Higher taxes led to a more progressive distribution of wealth which put money into the pockets of individuals with a high likelihood to spend.

     

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    • Ana Luisa user photo

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      Ana Luisa Dec 06, 2012

      The economy should be left to run alone. When the gov't starts playing a big role in the economy all the right economic incentives are destroyed. Further, if the gov't only supervised that property, liberty and individually are maintained, then there would be no need to seek for a more equitable distribution of wealth, because by preserving these three fundamental human rights equality would be at its highest. Rather than focusing on making society equal, the gov't should focus on ensuring everyone's individuality, property and liberty are equally honored.

       

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